The way in which boards address accountability for
corporate crises, material risk and compliance events and poor
conduct is now the subject of intense scrutiny from various
stakeholders including regulators, investors and proxy
advisers.
When boards get this wrong the consequences escalate rapidly:
regulatory investigations, sustained reputational damage and loss
of social licence, shareholder revolts, cuts to director fees or
forced resignations, and erosion of employee and customer trust.
The speed, transparency and adequacy of the assessment of
accountability and the consequences applied is all in focus.
This article examines the regulatory and market factors that are
shaping expectations in this area and looks to provide guidance to
Boards as to how to be prepared to address these situations.
